Almost 200 European airports facing insolvency in coming months
ACI EUROPE today warned of such
fundamental risks to business continuity that an estimated 193 airports face
insolvency in the coming months if passenger traffic does not start to
recover by the year end. These airports between them facilitate 277
thousand jobs and €12.4 billion of European GDP.
The threat of airport closure means Europe faces the prospect of the collapse
of a significant part of its air transport system - unless Governments step up
to provide the required support. So far, few have done so.
Data published today shows:
• A year-on-year decrease of 73% in passenger traffic at Europe’s
airports in September
• The loss of an additional 172.5 million passengers in September
bringing the total volume of lost passengers since January 2020 to
1.29 billion
• As of mid-October, passenger traffic stood at 75% down from the
same period last year, reaching an 80% decrease for airports in the
EU/EEA/Switzerland/UK footprint - a clear downward trajectory
The permanence of severe restrictions to cross border travel into the Winter
season has considerably worsened the traffic outlook, as reflected in ACI
EUROPE’s latest forecast1. Many airlines have slashed their capacity plans for
the reminder of the year and into 20212.
The airports facing insolvency are mainly regional airports which serve - and
are integral to - local communities. The potential ripple-effect upon local
employment and economies is clear. Financial support from Government will
be crucial in averting rising geographic inequality and damaged social
cohesion. At the same time, larger European airports and hubs are not
immune from the critical financial risk. They have cut costs to the bone and
have resorted to the financial markets to shore up balance sheets and build
emergency war chests. This sudden increase in debt - an additional €16
billion for the top 20 European airports - is equivalent to nearly 60% of their
revenues in a normal year. This, along with the fact that these airports had
to make thousands of highly skilled workers redundant, clearly jeopardises
their future.
Olivier Jankovec, Director General of ACI EUROPE, said “In the midst of a
second wave, ensuring safe air travel continues to be our primary concern.
It’s crucial that we reduce the risks of importation and dissemination as
much as possible. But surely we can do a much better job of reducing those
risks by testing air passengers rather than with quarantines that cannot be
enforced.”
“The figures published today paint a dramatically bleak picture. 8 months
into the crisis, all of Europe’s airports are burning through cash to remain
open, with revenues far from covering the costs of operations, let alone
capital costs. Governments’ current imposition of quarantines rather than
testing is bringing Europe’s airports closer to the brink with every day that
passes.”
ACI EUROPE is the European region of Airports Council International (ACI), the only
worldwide professional association of airport operators. ACI EUROPE represents over
500 airports in 46 European countries. Our members facilitate over 90% of
commercial air traffic in Europe